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Lol. Yes, I said that. So you do understand that 23.8% < 37%, right? I'm waiting to hear why it is ok to pay 23.8 on 1 billion salary. And why my family (middle class) pays higher rate.
The middle class pays nowhere close to 3% income tax rate, but nice try.
Ok, I see it. That is capital gains. Many billionaires make their income through cap gains. 23.8 is the highest long term capital gains rates. You can argue the merits of capital gains tax if you don't agree. But it's not the same as the income tax.
Ok, I see it. That is capital gains. Many billionaires make their income through cap gains. 23.8 is the highest long term capital gains rates. You can argue the merits of capital gains tax if you don't agree. But it's not the same as the income tax.
No. Google "carried interest", it is compensation for service, pure and simple. I was talkig about a very specific category.
Not discussing the merits of capital gains tax, and least not here.
Yes, they do, google compensation of top hedge fund managers.
Also, if it were 100 million, would it be somehow ok, to pay capital gains rate instead of regular income tax rate on what is a compensation for service?
Yes, they do, google compensation of top hedge fund managers.
Also, if it were 100 million, would it be somehow ok, to pay capital gains rate instead of regular income tax rate on what is a compensation for service?
It is not salary, it is a share of partnership profits.
Clearly you don't like it, but there is a significant difference between salary and carried interest.
if there is no profit in the partnership, the carried interest recipient gets nothing.
Salary gets paid no matter what.
This has been an issue for more than 40 years, despite the public outcry over it there's little chance it will change any time soon.
By the way, I'm not saying I think it's right that carried interest gets taxed as a share of profits, just that is what current law supports and the fact that there is a rationale for it.
Ok, I see it. That is capital gains. Many billionaires make their income through cap gains. 23.8 is the highest long term capital gains rates. You can argue the merits of capital gains tax if you don't agree. But it's not the same as the income tax.
if there is no profit in the partnership, the carried interest recipient gets nothing.
Salary gets paid no matter what.
This has been an issue for more than 40 years, despite the public outcry over it there's little chance it will change any time soon.
By the way, I'm not saying I think it's right that carried interest gets taxed as a share of profits, just that is what current law supports and the fact that there is a rationale for it.
Doesn't matter, it can not get less than 0, so should not qualify for capital gains rate, period.
P.S. And of course just in case something horrible like "no profit" happens there is another element of the compensation, that's not profit dependent. Now, that one is taxed under the real rates.
I just get this mental image of many of these posters pontificating against the EITC etc as a bunch of rich guys, sitting at a table at a country club after a round of golf during work hours, rolling their eyes about how hard their lives are and poor people have it so damn easy. Then the conversation drifts to anyone can get a job making 250K a year as if talent, luck, and intelligence are never even a factor.
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